Liquidity planning

Detailed liquidity planning is crucial for every company. Particularly startups should pay close attention to realistic budgeting and liquidity planning, as capital is often limited.

The primary purpose of budget planning is to schedule the inflow of revenue and expenses throughout the year. Generally, costs and revenues are incurred irregularly throughout the year. The goal of budgeting is to ensure that the company's liquidity is never at risk, thus preventing a potential bankruptcy. On the other hand, a too large liquidity reserve should be avoided, as liquid assets do not earn interest, and thus represent "dead capital."

Liquidity planning should essentially be prepared on a monthly basis, for a period of 1-2 years. Moreover, a monthly reporting of the actual-to-target comparison is important to align the current situation with the set goals. Based on this, liquidity can be managed and the risk of bankruptcy minimized.

To avoid a liquidity shortage or to strengthen liquidity, there are various possibilities, such as Working Capital Management.

Our experts are happy to advise you on all matters related to liquidity planning.

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